Arisk profilerepresents the aggregate level and types of risks that an organization is willing to accept in pursuit of its strategic objectives. It aligns with the organization’s risk appetite and tolerance and helps prioritize and manage risks effectively.
This profile typically includes key risks, their likelihood, and potential impact, as well as how those risks align with the organization's mission and strategy.
Why Is Risk Profile the Correct Answer?
The risk profile provides an enterprise-wide view of risks and their potential influence on achieving strategic goals. It aggregates risks across all levels of the organization and ensures that management considers them when making decisions.
Why Other Options Are Incorrect:
A. Risk Register:While a risk register includes detailed descriptions of individual risks, it does not aggregate risk levels or types across the organization.
B. Risk and Control Evaluation Matrix:This tool evaluates specific risks and controls but does not capture the organization’s overall risk appetite or profile.
D. Risk and Control Assessment Tool:This is a generic tool for assessing risks and controls, not for aggregating the overall risk picture.
References and Documents:
OMB Circular A-123:Specifies the need for agencies to maintain a risk profile as part of enterprise risk management.
COSO ERM Framework (2017):Defines a risk profile as central to managing risks in alignment with strategic objectives.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit